Developing a successful marketing strategy for your game can be challenging, especially in today’s crowded market. As a game developer, it is important to understand your target audience and their behavior in order to effectively reach and engage with them.
One effective way to do this is through behavioral segmentation. This involves dividing your customer base into groups based on their behavior patterns, such as purchase decisions, product usage, and engagement with your game. By understanding these behaviors, you can tailor your marketing efforts to effectively reach and engage with each group.
Behavioral Segmentation Definition
Before we break down the different strategies for behavioral segmentation, let’s define what it is. Behavioral segmentation is a marketing technique that involves dividing a customer base into groups based on their behaviors and actions related to a product or service.
The benefits of behavioral segmentation is that it allows for more targeted and personalized marketing efforts, resulting in higher conversion rates and customer satisfaction. With that being said, there are a few different strategies you can use to effectively segment your audience and tailor your marketing efforts.
7 Different Types of Behavioral Segmentation
Choosing the right type of segmentation strategy for your specific campaigns is crucial for any game developer. And with the vast amount of data available at our fingertips today, there are various types of segmentation that can be used to target different customer groups effectively. Let’s explore seven different behavioral segmentation strategies that can help game developers in their marketing efforts.
1. Occasion-Based Segmentation
This type of segmentation involves dividing customers based on the occasions or events when they use your game. For example, targeting players who tend to play during weekends or holidays with special in-game promotions could be effective. Black Friday or Cyber Monday sales are also examples of occasion-based segmentation.
The importance of this segmentation lies in the ability to understand and cater to specific preferences of players during different occasions. This can result in increased engagement and customer satisfaction.
Occasions don’t have to be specific holidays or events. They can also be based on personal milestones, such as birthdays, anniversaries, or even the player’s level achievement in the game. By targeting players during these special occasions with personalized offers or rewards, game developers can create a sense of exclusivity and increase player loyalty.
Imagine a Virgo (star sign) segment with people having birthdays in September – you could offer them a special birthday bonus in your game. This type of segmentation can also help gather valuable insights about the player’s behavior and preferences, allowing for better targeting in future marketing efforts. A 50% off skin that represents this star sign would help them feel important and appreciated, ultimately leading to increased player retention and conversion rates.
Of course, deeper data collection would required to create personalized occasion based segmentation, but it’s also important to keep in mind that occasions can be found from in-game analytics. For example, if an MMORPG asks for their birthday or character creation date, you can use that as a basis for personalization. Many players live virtually through their characters, so acknowledging these special dates can make them feel more connected to the game and the community.
Got married to an elf character on Valentine’s Day? Offer a special in-game wedding ceremony or exclusive items for couples with characters married on this day. How about when you slayed that dragon and came home victorious exactly 1-year ago and can now purchase a legacy outfit? These small but meaningful gestures can go a long way in creating a positive and memorable experience for players.
2. Usage-Based Segmentation
This type of segmentation involves categorizing players based on their usage or interaction with the game. This could include metrics such as playtime, number of logins, in-game purchases, and more. Usage-based segmentation can help identify high-value players who are dedicated to the game and may be more likely to make in-game purchases.
For example, a player who logs in every day for at least an hour and makes regular in-game purchases can be considered a high-value player. By segmenting these players, game developers can create targeted marketing campaigns that offer exclusive rewards or discounts to further increase loyalty and engagement. These heavy users can also be targeted for beta testing new features or providing feedback on game updates.
On the other hand, players who only log in a few times a week and rarely make purchases can be considered light users. While they may not contribute as much in terms of revenue, light users can still provide valuable insights for game improvement and should not be neglected. Special events or promotions targeted towards this segment can help encourage them to increase their usage and potentially become high-value players in the future.
This type of segmentation can be used to tailor copywriting specifically to either ensure that top-players (revenue wise) feels appreciated, or to nudge light users towards becoming medium-to-high-value ones. “You’re so close to becoming a champion in this game, most successful winners play for at least 10 hours a week. Keep playing to unlock special rewards and level up faster!”
This targeted approach can also help reduce the churn rate of players who may be losing interest in the game. It helps them set goals and gives them a sense of accomplishment when they reach certain milestones.
Now, if you send that exact message to those that are already playing more than 20 hours per week, it wouldn’t have the same effect. Instead, a message like “Congratulations on being one of our top players! Keep up the great work and continue dominating the leaderboard!” would be more appropriate and motivating for this segment.
3. Customer Segmentation
Based on purchasing behavior, players can also be segmented into various categories. These categories can include:
- New players: Players who have recently joined the game and have not made any purchases yet.
- Light users: Players who log in sporadically and make infrequent, small purchases.
- Medium users: Players who log in regularly and make moderate-sized purchases.
- Heavy users: Players who log in frequently and make substantial purchases.
- Whales: Players who spend large amounts of money on in-game purchases.
By understanding these different segments, game developers can develop targeted strategies for each group to increase revenue, engagement, and loyalty. For example, new players in the consideration stage, can be targeted with special promotions to encourage them to make their first purchase, while loyal customers may benefit from exclusive perks or rewards for their loyalty.
With the relevant information tailored to each customer segment, developers can create personalized messages and offers that resonate with each group’s behaviors and preferences. This approach not only helps to increase revenue but also improves the overall player experience by providing them with relevant and valuable content.
This segmentation differs from the previous usage segmentation because it focuses more on revenue per customer rather than play time. Someone that only plays 1-hour per week would be segmented into the light user category, but still, they could potentially generate more revenue for the game by making in-app purchases compared to someone who plays 10 hours per week but never spends any money. That’s why having both these types of segmentation can give a more comprehensive understanding of the player base and their behaviors.
4. Loyalty-Based Segmentation
Customer lifetime value (CLV) is an essential metric in the game industry, as it indicates how valuable a customer is to the game over their lifetime. CLV takes into account not just the amount of money spent but also factors such as retention rates and frequency of purchases. By segmenting players based on their loyalty level, developers can target and prioritize high CLV customers for special promotions or rewards, as they are more likely to spend more money in the long run.
This segmentation can also help develop a brand loyalty program, where customers can earn rewards or perks for their continued support and engagement with the game. This not only encourages players to continue playing but also fosters a sense of community within the player base.
Customer loyalty can also be used as a measure for the success of new updates or features in the game. By tracking the retention rates and spending patterns of different loyalty segments before and after a significant update, developers can understand how well-received it was by their most loyal players.
Furthermore, this type of segmentation can also provide insights into why certain players may have lower CLV compared to others. For example, if a segment of highly engaged players suddenly stops playing or spending money on the game, it could indicate an issue with the game’s overall experience that needs to be addressed.
5. First-Time Buyers
Another way to segment players is by distinguishing between first-time buyers and making sure they feel like their purchase was worth it. This can be done through special offers or bonuses for their first purchase, as well as targeted messaging to guide them towards making additional purchases in the future.
As a customer base that is just starting to develop purchasing behaviours and habits, first-time buyers can provide valuable insights into what motivates players to spend money in the game. Developers can use this information to improve their overall monetization strategy and attract more customers. What is it exactly that makes players decide to make their first purchase? Is it a specific in-game item or feature, or is it related to the gameplay experience as a whole?
By understanding the factors that lead to first-time purchases, developers can focus on strengthening those aspects of the game and potentially increase their overall player base and CLV. Paired with data analytics (which we will discuss later), developers can continuously improve their monetization strategy and cater to the evolving needs and preferences of their players.
Nurturing this segment is also highly important. They need to know that their purchase was worth it and are more likely to make additional purchases if they feel satisfied with their first one. Following up and ensuring that they have a positive experience can also help build brand loyalty and encourage repeat purchases.
6. Geographic Segmentation
Geographic segmentation is the process of dividing a customer base based on their location or region. This can be especially useful for mobile games, as different regions may have varying preferences and spending habits when it comes to in-game purchases.
By targeting specific regions with tailored marketing strategies, developers can optimize their monetization efforts and potentially increase revenue. For example, if a certain region has a higher percentage of players who prefer cosmetic items over gameplay-enhancing items, developers can adjust their in-game offerings accordingly.
Data analysis and market research are crucial in determining the preferences and spending habits of different geographic segments. By understanding these differences, developers can effectively target their marketing efforts and cater to the needs of specific regions.
Cultural differences such as greeting gestures may differ from region to region as well, and it’s important for developers to consider these when designing their game and its monetization strategy. Bowing may be more common in certain regions, while others may prefer a handshake or hug. By incorporating these cultural nuances into the game, developers can create a more personalized and engaging experience for players.
7. Psychographic Segmentation
Finally, we have psychographic segmentation, which involves dividing customers based on their personality traits, values, interests, and lifestyle. This type of segmentation goes beyond demographics and looks at the underlying motivations and behaviors of different groups.
For multi-player games, this can be helpful in understanding what drives players to make in-game purchases. For example, some players may be motivated by competition and strive to have the best equipment or leaderboard rankings. Others may prioritize social interactions with other players and are more likely to purchase items that allow them to customize their avatar or communicate with others.
Psychographic segmentation can also help developers identify potential high-value customers who are willing to spend more on in-game purchases. For example, if there is an in-game currency and someone has been saving this virtual currency, they are likely to be savers in real life and may be more likely to make a larger purchase all at once rather than micro-transactions over time. So, a campaign of a limited edition, high valued and useful item, may be appealing to these types of players.
On the otherhand, if a player is consistently visiting the game’s shop and giving away their weapons or other in-game items, they may be more impulsive and willing to make smaller purchases more frequently. A flash-sale with low-cost items and messaging encouraging gifting of these items may be more effective in tapping into their impulsive buying tendencies.
Adding Analytics For a Greater Competitive Advantage
On top of having a solid understanding of the various types of behavioral segmentation, adding analytics into the mix can provide game developers with a greater competitive advantage. By collecting and analyzing data on the purchasing decisions of customers alongside real-time data of how players are responding to games, developers can gain valuable insights into their target audience’s behavior. This information can then be used to fine-tune marketing strategies and create personalized experiences for players.
For example, let’s say a game developer notices that a particular segment of customers is more likely to spend money on in-game purchases if they receive a discount code via email. By implementing this insight into their gameplay alongside their marketing campaigns, the developer can potentially increase revenue from this segment and improve overall customer satisfaction.
In addition to segmentation strategies, analytics can also help identify potential new segments and opportunities for growth. By regularly tracking and analyzing data, developers can stay ahead of trends and adjust their strategies to cater to emerging segments.
These are just two examples and Helika is the perfect partner for unlocking these insights…
Whether you’re launching your first game or have decades of experience in game development, Helika is here to elevate your process. As a leading analytics platform, Helika empowers top Web3 game developers—including Maplestory, Ubisoft, Yuga Labs, Parallel, and more—to make informed, data-driven decisions that boost player engagement, retention, and monetization.
Our robust analytics tools and expert data analysts deliver actionable insights, helping studios refine gameplay mechanics and optimize the player experience. For blockchain game developers, Helika’s cutting-edge on-chain analytics provides real-time data on player activity and in-game transactions. This enables you to adapt your segmentation and monetization strategies in real-time, keeping up with the fast-paced world of blockchain gaming.
Final Thoughts
As you can see, creating a generation defining game takes much more than the gameplay itself. It’s understanding your target audience and building a direct and meaningful connection with each individual player. Analytics is the key to unlocking these insights and Helika is the perfect partner to help you achieve this. Feel free to contact us today to take your game to the next level. With Helika, you’ll have all the necessary tools and expertise at your fingertips to drive growth and success.
